The Class: Robbins LLP informs investors that an additional class action lawsuit has been filed on behalf of all investors who purchased or otherwise acquired FIGS, Inc. (NYSE: FIGS) Class A common stock between May 27, 2021 and May 12, 2022, or pursuant to the Company's initial public offering ("IPO"), or pursuant to the Company's secondary public offering ("IPO"). The complaint alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. FIGS is a direct-to-consumer healthcare apparel and lifestyle brand that primarily sells its products in the United States through the Company’s digital platforms.
What Now: Similarly situated shareholders may be eligible to participate in the class action against the officers and directors of FIGS. Shareholders who want to act as lead plaintiff for the class must file their papers by January 3, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: FIGS, Inc. Made False and Misleading Statements in its Offering Documents in Support of its IPO and SPO
According to the complaint, FIGS conducted its IPO on May 27, 2021, selling shares at $22.00 per share. However, defendants made misleading statements in support of the IPO. Specifically, defendants inflated the Company’s true ability to successfully secure repeat customers and failed to disclose that the Company was making choices independent of, and directly at odds with, its purported data-driven inventory approach.
FIGS conducted its SPO in September 2021, selling shares at $40.25 per share. The Offering Documents, however, included the same misleading statements as set forth in support of the IPO.
On December 10, 2021, FIGS announced that its Chief Financial Officer (“CFO”) Jeffrey D. Lawrence, would be resigning effective December 24, 2021, less than one year after becoming CFO. On this news, the price of FIGS stock declined by $6.57 per share, or over 21%, to close at $24.65 per share on December 10, 2021.
Then, on May 12, 2022, FIGS announced disappointing financial results and slashed its expected sales, gross margin, and adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”). FIGS attributed the poor financial results to “inventory constraints” which the Company stated were “the primary factor affecting our outlook for the full year.” In response to this news, the price of FIGS stock declined by $3.21 per share, or nearly 25%, from a closing price of $12.85 per share on May 12, 2022, to a closing price of $9.64 per share on May 13, 2022, on unusually high trading volume.
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